Azwi wants to buy a microwave oven.The cost of the microwave oven is R1750 excluding VAT.we assume that the VAT is 4 percent.If he pays in cash, the company offers a 5 percent discount.How much will he save if he buys the microwave oven in cash?
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Answer:
Total saving = 91 Rs
Step-by-step explanation:
According to given information,
Cost of microwave is 1750
5% discount on 87.5
If he buys on cash; then cost he has to pay = 1750 – 87.5
Cost on cash = 1662.5
Adding 4% VAT on it,
Total cost paid on cash = 1662.5 + 66.5 = 1729
Total cost without discout = 0.04*1750 + 1750 = 1820
Total saving = 1820 – 1729 = 91
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